VRT Valuation

Vertiv Holdings Co

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126.580

-0.96(-0.753%)1D

Overview
Forecast
Valuation
Earnings

VRT Relative Valuation

VRT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, VRT is overvalued; if below, it's undervalued.

Historical Valuation

Vertiv Holdings Co (VRT) is now in the Fair zone, suggesting that its current forward PE ratio of 29.86 is considered Fairly compared with the five-year average of 22.29. The fair price of Vertiv Holdings Co (VRT) is between 68.82 to 129.45 according to relative valuation methord.

Relative Value

Fair Zone

68.82-129.45

Current Price：127.54

Fair

29.86

Trailing

Forward

21.42

EV/EBITDA

Vertiv Holdings Co. (VRT) has a current EV/EBITDA of 21.42. The 5-year average EV/EBITDA is 15.23. The thresholds are as follows: Strongly Undervalued below 5.26, Undervalued between 5.26 and 10.25, Fairly Valued between 20.22 and 10.25, Overvalued between 20.22 and 25.20, and Strongly Overvalued above 25.20. The current Forward EV/EBITDA of 21.42 falls within the Overvalued range.

22.53

EV/EBIT

Vertiv Holdings Co. (VRT) has a current EV/EBIT of 22.53. The 5-year average EV/EBIT is 16.97. The thresholds are as follows: Strongly Undervalued below 6.70, Undervalued between 6.70 and 11.83, Fairly Valued between 22.11 and 11.83, Overvalued between 22.11 and 27.25, and Strongly Overvalued above 27.25. The current Forward EV/EBIT of 22.53 falls within the Overvalued range.

4.60

Vertiv Holdings Co. (VRT) has a current PS of 4.60. The 5-year average PS is 2.24. The thresholds are as follows: Strongly Undervalued below -0.72, Undervalued between -0.72 and 0.76, Fairly Valued between 3.72 and 0.76, Overvalued between 3.72 and 5.20, and Strongly Overvalued above 5.20. The current Forward PS of 4.60 falls within the Overvalued range.

26.66

P/OCF

Vertiv Holdings Co. (VRT) has a current P/OCF of 26.66. The 5-year average P/OCF is 4.96. The thresholds are as follows: Strongly Undervalued below -142.07, Undervalued between -142.07 and -68.55, Fairly Valued between 78.48 and -68.55, Overvalued between 78.48 and 151.99, and Strongly Overvalued above 151.99. The current Forward P/OCF of 26.66 falls within the Historic Trend Line -Fairly Valued range.

31.95

P/FCF

Vertiv Holdings Co. (VRT) has a current P/FCF of 31.95. The 5-year average P/FCF is 24.74. The thresholds are as follows: Strongly Undervalued below -14.60, Undervalued between -14.60 and 5.07, Fairly Valued between 44.41 and 5.07, Overvalued between 44.41 and 64.08, and Strongly Overvalued above 64.08. The current Forward P/FCF of 31.95 falls within the Historic Trend Line -Fairly Valued range.

Vertiv Holdings Co (VRT) has a current Price-to-Book (P/B) ratio of 15.58. Compared to its 3-year average P/B ratio of 12.89 , the current P/B ratio is approximately 20.90% higher. Relative to its 5-year average P/B ratio of 11.80, the current P/B ratio is about 32.07% higher. Vertiv Holdings Co (VRT) has a Forward Free Cash Flow (FCF) yield of approximately 2.53%. Compared to its 3-year average FCF yield of 0.72%, the current FCF yield is approximately 251.37% lower. Relative to its 5-year average FCF yield of 1.06% , the current FCF yield is about 139.79% lower.

15.58

P/B

Median3y

12.89

Median5y

11.80

2.53

FCF Yield

Median3y

0.72

Median5y

1.06

Competitors Valuation Multiple

The average P/S ratio for VRT's competitors is 3.96, providing a benchmark for relative valuation. Vertiv Holdings Co Corp (VRT) exhibits a P/S ratio of 4.60, which is 16.10% above the industry average. Given its robust revenue growth of 35.09%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Universal Display Corp

Performance Decomposition

Market capitalization of VRT increased by 52.54% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.95B to 2.64B.

The secondary factor is the Margin Expansion, contributed 34.76%to the performance.

Overall, the performance of VRT in the past 1 year is driven by Revenue Growth. Which is more sustainable.

35.09%

1.95B → 2.64B

Revenue Growth

34.76%

9.12 → 12.29

Margin Expansion

-17.31%

73.14 → 60.48

P/E Change

52.54%